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Item Description

Title:

An economic evaluation of military family response to the current Department of Defense housing program; Military family response to the current Department of Defense housing program
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Author:

Gertcher, Frank L

Date:

1981

Abstract:

This study provides a method for explaining the effects of the current Department of Defense (DoD) housing program on military family housing choice behavior. In addition, this study provides a method for evaluating the current DoD housing program in terms of social benefits and costs and in terms of whether it achieves its stated purpose of increasing the amount of housing service consumed by military families. Three models are presented. The first model uses the multinomial logit technique to explain housing choice behavior. The model expresses the probability of choice of home ownership, private rental or military rental as a function of the respective differences in the values for the following housing attributes: monthly cost of housing services, distance to work, and number of bedrooms, and the values for the following socioeconomic characteristics: military income, number of persons in family, and the expected period of dwelling unit occupancy. The second model provides a means to estimate net social and net family benefits of military rental housing compared to private market alternatives. The model uses consumer surplus techniques which extend models developed by previous researchers. The third and final model is completely new and provides a method for determining whether the current DoD housing program induces military families to consume more or less housing service than they otherwise would in the private market. All three models were applied to a representative cross-sectional sample of military families assigned to Travis, Ellsworth, MacDill, and Tinker Air Force bases in calendar year 1978. The results from the logit model clearly show the effects of the DoD housing program on housing choice behavior. The results are also consistent with the results of previous studies of predominately civilian families. Overall, the results from the benefit-cost model indicate that the DoD housing program obtains a net social as well as a net family benefit for military families. Minor exceptions are noted in the text. The housing service consumption model indicates that the DoD housing program induces junior and senior enlisted families to consume more housing service than they otherwise would in the private market. On the other hand, company grade families would consume more housing services in the private market. Field grade families consume more housing service at Travis and Ellsworth and they consume less at MacDill and Tinker compared to the private market. However, the results from the benefit-cost model and the housing service consumption model are preliminary and should not be considered conclusive.

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